Statement on the fourth Sanctions Coordinators Forum

On 23 September 2024, EU Sanctions Envoy, David O’Sullivan, convened the fourth Sanctions Coordinators Forum, gathering high-level representatives from all EU Member States and a broad coalition of international partners from 12 countries. Commissioner Mairead McGuinness, in charge of sanctions, opened the Forum. Representatives of the Government of Ukraine joined for a dedicated session. The Forum was closely coordinated with our U.S. and UK partners. The U.S. Acting Sanctions Coordinator, Erin McConaha, the UK Sanctions Director, David Reed, representatives of different U.S. and UK government departments as well as senior European Commission officials were central to framing the discussion.

The Forum covered three broad issues:

• First, the measurable impact that sanctions are having on Russia. Here, the discussion focused on the war footing of the Russian economy, including the spending of nearly half of its federal budget on defence and security
   
• Second, the progress and next steps in further disrupting Russia’s access to sensitive technology with a potential military application. Overall, it is clear that sanctions and export controls are frustrating the Kremlin’s military ambitions. The measures are increasing costs, causing delays as well as impairing the quality and precision of Russia’s military equipment. Russia is believed now to be paying over 130% more for semiconductors than it was before the invasion, and more than 300% more for machine tools sourced via China and Turkey. Moreover, we observe that - as a result of our joint effort and outreach - trade to Russia from such countries as Armenia, Georgia, Kazakhstan, Kyrgyzstan, Serbia, Turkey and Uzbekistan has dropped significantly. We also discussed the results of our collective outreach to third countries, financial institutions and industry
   
• Third, the strengthening of the enforcement of the Oil Price Cap and the targeting of the ‘shadow fleet’, thereby squeezing Russian oil revenues used to finance its illegal war. The importance of dialogue and action, including vis-à-vis our own operators, was an overarching theme

Following the Forum, EU Sanctions Envoy David O’Sullivan said: “This is the fourth time we meet in Brussels and our numbers are growing, which is a true testament to our determination to disrupt Russia’s war machine. What we have done so far is bearing results. We see it from reduced trade flows to an even more vigorous compliance of our operators. At the same time, there is more that needs to be done and relentless enforcement is where we all should focus on now”.

Related links

Sanctions adopted following Russia’s military aggression against Ukraine

Overview of sanctions and related resources